Credit cards offer different financial solutions for customers. There are different types of cards available to meet the various needs that people may have. One of the most popular reasons for having a credit card is for the rewards they offer.
In addition to earning rewards, there are some credit card types that may offer interest-free periods.
Interest free credit card offers come with some kind of introductory period (usually 6-18 months) in which you are not charged interest.
You would need to make the monthly payments and get the debt paid off before the end of the introductory period.
To avoid having to pay interest, any outstanding balance must be paid off on or before the last day of a credit card’s interest free period.
With an interest free credit card, the minimum repayment specified in the card’s terms is still required each month.
It’s always a good idea to pay more than the minimum in order to clear any transactions before the promotional period ends and the standard interest rate starts to apply.
What happens when the interest free offer ends:
If the whole balance is paid off during the 0% period, no interest will be charged at all.
Credit card holders won’t be charged interest on the full purchase price if they repaid some of the balance before the end of the 0% offer.
Keep in mind that the credit card provider has the right to withdraw the offer if certain conditions are breached by the credit card holder. This can happen when cardholders fail to make minimum repayments or If cardholders exceed their credit limit.
If you choose to transfer a balance from another more high-interest credit card, you can save more by using your interest free credit card.